Enough money to retire at 26?

System

@GreyQueen

NI contributions are £2.50 per week, although I won't be entitled to JSA, and other benefits, but don't need them

2014 inflation is around 1.5%. Quick sees there is a 1 year fixed account offering 1.85% interest. So in fact, my capital is GROWING thanks to the interest.

Buy a car that offers free road tax . My tax is currently only £30 a year. I have no desire to own a range rover or a anything like that. My car insurance is less than £200 and cheapest in the family. I doubt I will be using the car much so cost of repairs will be lower.

Council tax is £1000 including 25% discount.


I'm too scared to buy and let incase I lose a lot of money.



I'm a frugal for sure but also happy to be honest. I want a girlfriend but I know I would probably need to drop the frugal plan unless I can find a girl similar to me but I bet that's impossible

Bitsy_Beans

berbastrike wrote: »

Like what costs?

Roof tiles, guttering.....accidents and bad weather. What if your home flooded from a broken appliance do you have an emergency fund for that? Storm damage in bad weather? Roof tiles need rebedding. Fascias, barge boards either need over facing or maintaining. Windows....are they wood or are have they been replaced.

Basically stuff houses do not look after themselves and at some point all need repairs. You need a contingency fund because home repairs can be expensive.

System

oozy wrote: »

Out of interest, what job are you doing that you would want to retire at 26?

It must pay a lot-approx 100k a year if working since 21(assuming 200k house/mortgage)-for you to have paid off your mortgage/saved 300k (500k-ish).

I'm assuming a lot but surely you can carry on for a few more years at that rate?

I'm just planning for the worst case scenario.. if business continues its current level, will have £750k at 28

System

Bitsy_Beans wrote: »

Roof tiles, guttering.....accidents and bad weather. What if your home flooded from a broken appliance do you have an emergency fund for that? Storm damage in bad weather? Roof tiles need rebedding. Fascias, barge boards either need over facing or maintaining. Windows....are they wood or are have they been replaced.

Basically stuff houses do not look after themselves and at some point all need repairs. You need a contingency fund because home repairs can be expensive.

Home insurance, £50 a year...


Also live in a relative new build, decent quality.

lazer

berbastrike wrote: »

@GreyQueen

NI contributions are £2.50 per week, although I won't be entitled to JSA, and other benefits, but don't need them

2014 inflation is around 1.5%. Quick sees there is a 1 year fixed account offering 1.85% interest. So in fact, my capital is GROWING thanks to the interest.

Buy a car that offers free road tax . My tax is currently only £30 a year. I have no desire to own a range rover or a anything like that. My car insurance is less than £200 and cheapest in the family. I doubt I will be using the car much so cost of repairs will be lower.

Council tax is £1000 including 25% discount.


I'm too scared to buy and let incase I lose a lot of money.



I'm a frugal for sure but also happy to be honest. I want a girlfriend but I know I would probably need to drop the frugal plan unless I can find a girl similar to me but I bet that's impossible

If I wasn't already married - I'd be your girlfriend, would love a simple life and less work!

System

pigpen wrote: »

Then you will need to replace appliances, they don't last forever, fridge freezer washing machine dishwasher.. and small appliances.. kettle, microwave, toaster etc

Average appliance life say 10 years.

Washing machine = £200
Dishwasher = necessary? £150
Fridge = £200

Say £600

Divided by 10, only £60 a year, not huge costs.

Bitsy_Beans

berbastrike wrote: »

Home insurance, £50 a year...


Also live in a relative new build, decent quality.

You're being incredibly naive here.

Home insurance usually has an excess for a start. Plus if you have to keep claiming for accidental damage your premiums will not remain at £50. What about general wear and tear on items? Stuff does not last forever.

System

Bitsy_Beans wrote: »

You're being incredibly naive here.

Home insurance usually has an excess for a start. Plus if you have to keep claiming for accidental damage your premiums will not remain at £50. What about general wear and tear on items? Stuff does not last forever.

You're being pessimistic.

I have never known any of my homes or friends homes to be flooded and we stay in the North!

fuddle

You have an answer for everything berbastrike. You really have thought this through haven't you?

Security in retirement is something that I have been thinking about a great deal lately. I will spend my whole working life trying to achieve some sort of security so the idea that you could use up all your security during your working life and risk being a pauper in your elderly years is something that I cannot understand.

I too appreciate life over work but I have had 5 years 'out' being a SAHM. When my little one went to school and my job was 'done' and I had very little to actually live on, let alone money to do stuff to entertain me, I became withdrawn and quite depressed.

I think we all need a purpose and fo you to be truly successful in your plan I think you need something to do with your time that won't incur costs to your budget.

If you're serious about this, I wish you well.

Bitsy_Beans

berbastrike wrote: »

You're being pessimistic.

I have never known any of my homes or friends homes to be flooded and we stay in the North!

You're living in cloud cookoo land. I am not pessimistic but I've owned 3 houses ranging from 70 years old to 20. Stuff breaks and damage occurs. If you can't accept that needs to be factored in then you will get a rude awakening,

My brothers kitchen just flooded due to a faulty pipe. Flooding isn't JUST from excess rain.